Quick Facts
ETX Capital is a well-established online trading platform that offers both spread betting and CFD trading options.
Spread betting with ETX Capital allows traders to bet on the price movements of various financial instruments without actually owning the underlying asset.
CFD trading with ETX Capital enables traders to buy or sell contracts for difference, which are agreements to exchange the difference in value of an asset between the time the contract is opened and closed.
ETX Capital offers a range of markets for spread betting and CFD trading, including forex, indices, commodities, and shares.
Margin requirements for spread betting and CFD trading with ETX Capital vary depending on the market and the trader’s account type.
Leverage is available for both spread betting and CFD trading with ETX Capital, allowing traders to control larger positions with a smaller amount of capital.
ETX Capital offers competitive spreads for both spread betting and CFD trading, with tight spreads on major forex pairs and other popular markets.
Trading platforms available with ETX Capital include the ETX TraderPro platform, as well as the popular MetaTrader 4 platform.
ETX Capital offers flexible trading options, including the ability to trade on desktop, mobile, or tablet devices.
Regulation is an important aspect of ETX Capital’s operations, with the company being regulated by the Financial Conduct Authority (FCA).
ETX Capital Spread Betting vs CFD: My Personal Experience
As I reflect on my journey in the world of online trading, I realize that one of the most critical decisions I made was choosing between spread betting and CFD (Contract for Difference) trading. In this article, I’ll share my personal experience with ETX Capital, a well-established online broker, and explore the pros and cons of each option.
My Background
Before diving into the specifics, let me give you a brief overview of my trading experience. I’m a self-taught trader with a passion for technical analysis and risk management. I’ve been trading for over five years, and I’ve tried various brokers, including ETX Capital. My goal is to provide a platform that is both informative and relatable.
What is Spread Betting?
Spread betting is a type of derivative trading that enables you to speculate on the price movement of an underlying asset without actually owning it. You’re essentially betting on whether the price will rise or fall.
What is CFD Trading?
CFD trading is a type of derivative trading that enables you to speculate on the price movement of an underlying asset without actually owning it. CFDs are available globally, but they’re not tax-free like spread betting. CFD trading involves buying and selling contracts that mirror the price of the underlying asset.
ETX Capital: My Experience
I opened an account with ETX Capital in 2018, and I’ve been using their platform for both spread betting and CFD trading. ETX Capital is a well-established online broker, regulated by the FCA (Financial Conduct Authority) and has a strong reputation among traders.
Pros of ETX Capital Spread Betting:
Tax-free profits: As a UK resident, I don’t pay capital gains tax on my spreads betting profits.
Low minimum stakes: ETX Capital allows me to place trades with a minimum stake of £10 per point.
Wide market range: I can trade on a variety of markets, including forex, indices, and commodities.
Cons of ETX Capital Spread Betting:
limited global availability: Spread betting is only available in the UK and Ireland.
Higher spreads: ETX Capital’s CFD spreads are generally lower than their spread betting spreads.
ETX Capital CFD Trading
CFD trading is also an option on ETX Capital’s platform. Here are some pros and cons:
Pros of ETX Capital CFD Trading:
Global availability: CFD trading is available globally, not just in the UK and Ireland.
Lower spreads: ETX Capital’s CFD spreads are generally lower than their spread betting spreads.
More trading options: I can trade on a wider range of markets with CFDs, including crypto and options.
Cons of ETX Capital CFD Trading:
Capital gains tax: As a CFD trader, I’m liable to pay capital gains tax on my profits.
Higher minimum trade size: The minimum trade size for CFDs is generally higher than for spread betting.
Comparing ETX Capital Spread Betting and CFD Trading
Here’s a table that compares the key features of ETX Capital’s spread betting and CFD trading:
| Feature | CFD Trading | |
| Taxation | Subject to capital gains tax | |
| Availability | UK and Ireland | Global |
| Minimum trade size | £1 per point | Higher minimum trade size |
| Spreads | Higher spreads | Lower spreads |
| Global availability | Limited global availability | Global availability |
Frequently Asked Questions
Frequently Asked Questions
ETX Capital Spread Betting vs CFD
Below are some frequently asked questions about ETX Capital Spread Betting and CFD. If you have any further questions, please don’t hesitate to contact us.
1. What is the main difference between ETX Capital Spread Betting and CFD?
The main difference between ETX Capital Spread Betting and CFD is how profits and losses are calculated. With Spread Betting, the profit or loss is calculated by multiplying the stake by the difference between the opening and closing prices. With CFD, the profit or loss is calculated by multiplying the number of contracts by the difference between the opening and closing prices.
2. Are ETX Capital Spread Betting and CFD trading subject to capital gains tax?
In the UK, Spread Betting profits are currently free from capital gains tax, whereas CFD profits are subject to capital gains tax, depending on the individual’s circumstances.
3. What are the margin requirements for ETX Capital Spread Betting and CFD?
Both ETX Capital Spread Betting and CFD margins are based on the notional value of the trade. However, the margin requirements for CFDs can be higher than Spread Betting, especially for larger positions.
4. Can I short sell with ETX Capital Spread Betting and CFD?
Yes, both ETX Capital Spread Betting and CFD allow you to short sell, but keep in mind that short selling with CFDs carries higher risks due to the potential for unlimited losses.
5. Are there any differences in the markets available for ETX Capital Spread Betting and CFD?
ETX Capital offers a range of markets for both Spread Betting and CFD, including Forex, Indices, and Equities. But ETX Capital Spread Betting is limited to UK and European markets, while CFDs offer a broader range of international markets.
6. Are there any differences in the trading hours for ETX Capital Spread Betting and CFD?
Both ETX Capital Spread Betting and CFD offer 24-hour trading, Monday to Friday, but the specific trading hours for each market may differ slightly.
Remember to always understand the risks involved in Spread Betting and CFD trading before opening an account. Risk warning: 75% of retail investor accounts lose money when trading Spread Betting and CFDs with ETX Capital.
Summary
As a thrill-seeking trader, I’ve discovered the power of using both spread betting and CFDs with ETX Capital to catapult my trading skills to new heights. Within this review, I’ll outline my personal experience and the key takeaways on how to harness the combined strengths of ETX Capital spread betting and CFDs to significantly boost your trading prowess and profitability.
Spread Betting:
To begin with, spread betting allows me to speculate on the price movement of a wide range of assets, including indices, commodities, and currencies. What I appreciate about spread betting with ETX Capital is the flexibility to set my own trade size, giving me greater control over my risk. With spread betting, I can also benefit from the high leverage offered by ETX Capital, which amplifies my potential returns.
Key takeaways for spread betting:
• Understand the underlying markets: Before trading, it’s essential to be aware of the market conditions and trends to make informed decisions.
• Manage risk: Set stop-loss orders and limit your exposure to minimize potential losses.
• Know the benefits: Take advantage of the flexibility to set your own trade size and the high leverage offered by ETX Capital.
CFDs:
On the other hand, CFDs (Contracts for Difference) allow me to profit from both rising and falling markets. What I like about CFDs with ETX Capital is the simplicity and transparency of the trading process. With CFDs, I can trade a wide range of assets, benefit from the high liquidity and competitive spreads offered by ETX Capital.
Key takeaways for CFDs:
• Diversify your portfolio: CFDs offer a diverse range of underlying assets, allowing me to spread my risk and increase potential returns.
• Understand the contracts: Familiarize yourself with the contracts’ specifications, including the lot size, margin requirements, and any overnight fees.
• Monitor and adjust: Keep track of market conditions and adjust your positions accordingly to maximize profits.
Combining Spread Betting and CFDs:
In conclusion, combining spread betting and CFDs with ETX Capital has revolutionized my trading experience. By understanding the benefits and limitations of each, I can strategically use them to enhance my trading skills and increase my trading profits.
Key takeaways for combining Spread Betting and CFDs:
• Develop a trading plan: Establish a clear strategy that outlines your goals, risk tolerance, and exit points.
• Monitor and adapt: Continuously monitor market conditions and adjust your positions to ensure alignment with your trading plan.
• Leverage the strengths: Use the flexibility of spread betting and the simplicity of CFDs to maximize your returns.
By integrating spread betting and CFDs with ETX Capital, I’ve improved my trading abilities and increased my trading profitability. With this combined approach, I’ve been able to navigate various market conditions, manage risk, and capitalize on profitable opportunities.
